Thin Gage Open Loop System Cards and Method of Manufacture

ABSTRACT

An improved card design and manufacturing method to produce thin gage, open loop system cards, such as credit cards, debit cards, prepaid cards, financial cards, and payroll cards. The thin gage card structure may vary between 5-15 mils in thickness (0.005″ inches to 0.015″ inches) on a one ply plastic material such as PVC or polyester. The majority of manufacturing steps can be performed on a rotary press in a single operation. Card personalization will be accomplished on a high-speed machine using ink jet for all variable information imaged on both the front and back, and accompanied by high speed encoding of magnetic stripe or activation of integrated circuit elements utilized in the electronic payment process.

CROSS-REFERENCE TO RELATED APPLICATIONS

This is a continuation of U.S. patent application Ser. No. 13/017,650, filed Jan. 31, 2011, which is a nonprovisional of U.S. Provisional Patent Application Ser. No. 61/417,002, filed on Nov. 24, 2010, both of which of are hereby incorporated herein by reference.

Priority of U.S. patent application Ser. No. 13/017,650, filed Jan. 31, 2011 and U.S. Provisional Patent Application Ser. No. 61/417,002, filed Nov. 24, 2010, both of which are incorporated herein by reference, is hereby claimed.

International Application Serial No. PCT/US11/60175, filed on Nov. 10, 2011 (published as No. WO2012/071182 on May 31, 2012) is hereby incorporated herein by reference.

STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT

Not applicable

REFERENCE TO A “MICROFICHE APPENDIX”

Not applicable

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention relates to credit cards, debit cards, prepaid cards, financial cards, reward cards, payroll cards, and other cards used in an “open loop” system. An open loop card has the unique characteristics in that it can be used anywhere that an electronic payment network is used (Visa, MasterCard, American Express, Discover, etc). The account value is normally not physically stored on the card; instead, the card number uniquely identifies a record in a central database, where the account balance is maintained; therefore, the card must contain a card number for central database identification. Cards may contain a users name (such as a credit card), or may not contain a name (such as a prepaid or open loop gift card) and therefore be anonymous as to user identification.

For the purpose of this invention, the term “credit card” will be used for all “open loop” system cards.

2. General Background

The following U.S. patents are incorporated herein by reference:

TABLE PATENT NO. TITLE ISSUE DATE 3,790,754 Security Access Medium Feb. 5, 1974 4,573,711 Secure Credit Card and Method of Mar. 4, 1986 Manufacturing Same 4,973,515 Magnetic Card Nov. 27, 1990 6,592,035 Method and Apparatus for Rapid, Jul. 15, 2003 Serial Transaction Item Fabrication 6,644,551 Card Nov. 11, 2003 6,817,530 Multiple Image Security Features Nov. 16, 2004 for Identification Documents and Methods of Making Same 7,341,198 IC Card and a Method of Mar. 11, 2008 Manufacturing Same 2004/0004131 High Temperature Tag Having Jan. 8, 2004 Enclosed Transceiver 2006/0080198 Cash Transaction System Apr. 13, 2006 2007/0125866 IC Card and a Method of Jun. 7, 2007 Manufacturing Same 2009/0019751 Removably Attachable Card and Jan. 22, 2009 Card Retaining Device

In contrast to the open loop concept, a “closed loop” system restricts card usage to a single merchant or merchant group (restaurant, retail store, etc). The card typically contains a card number for point-of-sale activation and card inventory control. A central database is used for point-of-sale activation, processing of subsequent card based transactions, and maintenance of the associated account value. The card user is usually not identified.

In today's gift card market, both open loop and closed loop gift cards are common. The gift card market started primarily as a closed loop system, but open loop cards are evolving as a preferred choice since the gift recipient can use the card at an unlimited number of merchants.

Credit cards were introduced in the mid 1960's, and by 1977 Visa became the first credit card to be recognized worldwide and have the following features:

Physical Attributes

-   -   a. 30 mil multilayer PVC     -   b. Account #     -   c. Signature Panel     -   d. Magnetic Stripe

2. Account charges recorded using a specialized credit card imprinter

-   -   a. Used embossed credit card to get customer information (Name,         Account No., Expiration Date, etc.)     -   b. Embossed metal merchant plate set in imprinter     -   c. Adjustable data wheels to give date and transaction amount     -   d. Multi-part form set to obtain physical copies (customer,         merchant, credit card company)     -   e. Roller carriage mechanically pulled over the form set         (imprinting data/transaction amount, merchant information and         credit card information

3. 30 mil card construction

-   -   a. Necessitated by credit card imprinter     -   b. Mechanical pressure of rollers going over card flatten         embossing on thinner cards

4. 30 mil construction legacy

-   -   a. Brand image, bulk (thickness and raised lettering) creates         perceived customer value (vs. non-embossed or thin card)     -   b. No longer required since card transactions are processed         electronically using the magnetic stripe or embedded microchip.     -   c. Electronic verification of most cards, especially those for         debit and prepaid accounts.     -   d. Print transaction receipt on separate inexpensive printer

Disadvantages of 30 Mil Credit Cards Versus a Thin Gage (5-15 Mil) Credit Card

1. Thickness/Bulk: Thicker wallet and packages.

-   -   a. 30 mil card—no embossing (variable information printed using         thermal transfer ribbon or inkjet)         -   i. 10 mil (3 times thicker)         -   ii. 7 mil (4.3 times thicker)     -   b. 30 mil card with embossing: 50 mil thickness         -   1. 10 mil: 5 times thicker         -   2. 7 mil: 7 times thicker. Thicker wallet and packages.

2. Weight

-   -   a. Added mailing costs     -   b. Heavier wallet/purse

3. Embossing

-   -   a. Increases caliper 65-100%     -   b. Shortens card life by compromising material integrity during         embossing process where stock is mechanically stretched to         create the relief of the embossed characters.

4. Increased cost per card

-   -   a. Multiple ply lamination versus single ply     -   b. More material by weight     -   c. Increased number of manufacturing steps     -   d. Requires a multiple step sheet printing and laminating         process versus thin gage cards printed and die cut on a rotary         press process (rotary presses typically cannot print material         over 15 mils thick as thicker material is too stiff to go around         rollers on a rotary press versus a relatively straight path on a         sheet fed press).

Disadvantages of Thin Gage Cards

1. Customer perception that thinner card is less valuable

-   -   a. Brand Image: Embossing and thicker card is more valuable than         a flat thin card.     -   b. Perception starting to change as thin gage cards become more         common and customers realize the user advantages of the thinner         card.

2. Some older swipe readers may not read a thin card unless the magnetic stripe read head is spring mounted to accommodate variations in card thickness.

-   -   a. Most modern swipe terminal readers have spring mounted         magnetic read heads that can read 5-30 mil cards

3. Not all personalization features are available on thinner cards. Embossing and indented CVV2 on back of card is not practical on a thin gage card because these features physically require a thicker card.

4. RFID/Memory Chip Cards require a multiple layer laminated card (to insert the RFID chip and antenna, or the memory chip)

III. Background: Manufacturing Process—Standard Credit Card (30 mil)

1. PVC overlay with magnetic stripe

-   -   a. Magnetic stripe is hot stamped in one PVC overlay (back side)     -   b. Separate operation on a tape-layer machine in roll to sheet         or sheet to sheet configuration     -   c. Magnetic liquid slurry is placed on a Mylar carrier (and         dried in a manner similar to ink) that creates a magnetic tape         that is put into a roll and slit to the width of the magnetic         stripe. The roll of magnetic tape is applied with heat (leaving         the magnetic slurry stripe) and the Mylar carrier is removed. In         the proposed process, magnetics are directly applied to the thin         gage, one-layer plastic card; no Mylar carrier is required, thus         eliminating one cost and manufacturing element.

2. PVC Core Printing: The PVC is printed on both the front and backside using a variety of sheet fed presses (frequently including litho press and silk screen process).

3. Collation: The three sheets (front side PVC overlay, PVC core element, and back side PVC overlay with magnetic stripe) are collated together and ultrasonically welded at several points on the sheets to maintain registration.

4. Laminator: The three collated sheets are placed between metal lamination plates (called a “book”), and several books are placed in a laminator. Heat and pressure are applied to do a controlled melt of products bonding the core and top and bottom overlays into a single piece. After the sheets have cooled, they are removed from the laminator plates and stacked for die cutting.

5. Die Cutting the Individual Cards: Laminated sheets (30 mil) are placed in a die cutter or card punch to produce individual cards.

6. Apply hologram and signature panel to individual cards. The hologram is either applied to the front or back of each card by hot stamp, and the signature panel is applied to the back of the card by hot stamp. This application may be done in one combined operation, or two separate operations. The non-personalized card body is complete.

IV. Card Personalization

Card personalization may include the following elements:

-   -   1. Card Number (embossed, or printed by thermal transfer or ink         jet)     -   2. Validity Date/Expiration Date (embossed or printed by thermal         transfer or ink jet)     -   3. Individual's Name (embossed or printed by thermal transfer or         ink jet).     -   4. CVV2 on back side (indent printed or printed by thermal         transfer or ink jet). (CVV2 Definition is the trade term for         “Card Verification Value 2” which is a secondary security         related to the card number.     -    For the traditional 30-mil card, the CVV2 must be imprinted on         the back of the card, and must be indent printed. Indent         printing is the process of pressing printed characters downward         into the surface of the card.) On the thin gage card, the CVV2         can be thermal printed or ink jet printed on the surface of the         card, but the printing is not indented.     -   5. Other printing: PIN number with scratch off label; package         reference number, etc.     -   6. Magnetic encoding         Personalization elements are identical on both the standard         30-mil card as the thin gage card. However, on the thin gage         card, there is no embossing or indented CVV2. The thin gage card         is serialized using thermal transfer printing or ink jet         printing.

SUMMARY OF THE PRESENT INVENTION

The present invention is the result of the discovery of an improved card design and manufacturing method to produce thin gage, open loop system cards, such as credit cards, debit cards, prepaid cards, financial cards, and payroll cards. The thin gage card structure may vary between 5-15 mils in thickness (0.005″ inches to 0.015″ inches) on a one ply plastic material such as PVC, polycarbonate, styrene, polyester, PLA, or comparable natural or synthetic material. The majority of manufacturing steps can be performed on a rotary press in a single operation. Personalization will be accomplished in one step on a high-speed machine using ink jet for all information on both the front and back plus magnetic encoding.

BRIEF DESCRIPTION OF THE DRAWINGS

For a further understanding of the nature, objects, and advantages of the present invention, reference should be had to the following detailed description, read in conjunction with the following drawings, wherein like reference numerals denote like elements and wherein:

FIGS. 1A and 1B illustrate cross-section views of a prior art single core and a double core card respectively;

FIG. 2 illustrates an exploded cross-section view of a prior art single core card;

FIG. 3 illustrates a cross-section view of a thin gage open loop card of the present invention;

FIG. 4 illustrates a front view of the card illustrated in FIG. 3;

FIG. 5 illustrates a back side view of the card illustrated in FIG. 3;

FIGS. 6A and 6B illustrate views of two multi-part snap apart cards of the present invention; and

FIG. 6C illustrates a cross section view of the cards illustrated in FIGS. 6A and 6B, showing the snap apart feature of the cards.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

Before a discussion of the present invention, as illustrated in FIGS. 3 through 6C, reference is made to FIGS. 1A through 2, which illustrate the prior art cards as discussed above under the Background of the Invention.

In FIG. 1A there is a cross-section view of a standard credit card structure 10 having a PVC core element 12, a PVC overlay 13, with printed graphics 14, on both the front side 15 of the card 10, and the back side 16 of card 10. Back side 16 also includes a magnetic stripe 28. FIG. 1B illustrates the card structure 10, having two core elements assembled into a single card, called a split core card, where there are provided the two PVC core elements 17 and 18 between the upper and lower PVC overlays 13, which defines a split core card 10 having a thickness of 30 mils. The card would have the same features as the single core card 10 in FIG. 1A, and both cards would be fabricated in the manner as discussed under the General Background as discussed earlier.

The prior art card 10 is also illustrated in FIG. 2, where there is provided the upper and lower PVC overlays 13, with a single core element 12 therebetween, and including a hologram 22 on the front face 15 of the card, (or a hologram 22 on the back side of the card 16); and a signature panel 24 and magnetic strip 28 on the backside 16 of the card. Again the cards in FIGS. 1A, 1B, and 2 are standard multilayered cards as discussed.

Turning now to the present invention as seen in FIGS. 3 through 6C, the improved card structure 30 defines the open loop card structure of the present invention. As seen first in side view in FIG. 3, card 30 has a front side 32 upon which a hologram 34 is provided, and includes printed graphics 36. The back side 38 of card 30 may include one or more of the following: a signature panel 40, a magnetic stripe 42 and a hologram 34. Card 30 utilizes a thin gage 5-15 mil (7 mil and 10 mil most common) of one ply material 43 which eliminates embossing and indented CVV2 and uses high speed ink jet for personalization. The process for fabricating the card 30 encompasses a more efficient manufacturing process. The magnetic stripe 42 is applied to thin gage material by the preferred method of first, applying a magnetic slurry stripe in multiple streams directly to the plastic. This manufacturing process is faster than applying hot stamped magnetics. Slurry magnetic materials are less expensive because the magnetic stripe coating is applied directly to the plastic rather than to a throw away Mylar carrier that is discarded after the transfer of the magnetic stripe coating to the plastic through the hot stamp magnetic tape application process.

An alternative would be to apply the hot stamped magnetic tape rather than applying magnetic slurry directly to the plastic. Another alternative would be to directly apply magnetic slurry or hot stamped magnetic tape during the rotary press operation.

In the rotary press operation one would print front sides 32 and back sides 38 of cards 30; next apply a hologram 34. As an alternative, one could apply a hologram 34 to single cards 30 after die cutting.

Next the signature panel 40 would be printed on the back 38 of card 30 using specialty inks. An alternative would be to apply the signature panel 40 using a heat transfer signature panel tape on press; or apply the signature panel 40 to single card 30 after die cutting in a separate operation in a one-step heat transfer operation with the hologram 34.

Next the cards 30 would be scored at line 45 for providing multi-part snap apart cards 30A and 30B. They would be die-cut into single cards 30. To effect the card personalization step would require only one pass high-speed operation using ink jet on both sides 32 and 38 for all variable information, and magnetic encoding. This process is more efficient since personalization equipment for traditional 30 mil cards with embossing or thermal transfer printing, operates at production rates of 400-2,500 cards per hour, while card personalization equipment using ink-jet, can operate at production rates of over 10,000 cards per hour.

FIG. 6A illustrates multi-part cards 30, having a score line 45 along their common edge, so that one card 30A would be the card to utilize, while the second card 30B may include advertising materials, instructions, and other information. FIG. 6B illustrates an additional embodiment of the multipart cards 30 as seen in FIG. 6A where the two cards 30A and 30B would snap apart along score line 45, and would define the card 30A used to carry out the transaction, and the card 30B for other information and instructions or advertising. FIG. 6C illustrates a side view of the multipart cards 30 shown in FIGS. 6A and 6B, and clearly shows the score line 45 which would allow the two cards 30A and 30B to be snapped apart when ready for use.

PARTS LIST Description Number Standard card structure 10 PVC core element 12 PVC overlay 13 Printed graphics 14 Front side of card 15 Back side of card 16 PVC core element 17 PVC core element 18 Hologram 22 Signature panel 24 Magnetic stripe 28 Open loop card structure 30 Cards 30A, 30B Front side of card 32 Hologram 34 Printed graphics 36 Back side of card 38 Signature panel 40 Magnetic stripe 42 Single ply material 43 Score line 45

All measurements disclosed herein are at standard temperature and pressure, at sea level on Earth, unless indicated otherwise.

The foregoing embodiments are presented by way of example only; the scope of the present invention is to be limited only by the following claims. 

1. A thin gage open loop system card, comprising: a) a generally rectangular card body, further comprising a thin gage one ply plastic material between 5 and 15 mil thickness; b) a front side and back side of the card having at least graphics printed thereupon.
 2. The card in claim 1, wherein the thickness of the card would preferably be in the range of 7 to 10 mil thickness.
 3. The card in claim 1, wherein there would further be provided a hologram on the front or back side of the card.
 4. The card in claim 1, wherein a magnetic stripe is applied to the back side of the plastic thin gage material by the preferred method of first, applying a magnetic slurry stripe directly to the plastic.
 5. The card in claim 1, wherein a magnetic stripe is applied to the back side of the plastic thin gage material by applying a hot stamped magnetic tape.
 6. The card in claim 1, wherein the hologram would be applied in a rotary press operation by printing front and back sides of cards and then applying the hologram or applying the hologram to single cards after die cutting.
 7. The card in claim 1, wherein a signature panel comprised of an ink receptive coating, label, or hot stamp transfer coating is applied to the back of the card.
 8. The card in claim 1, wherein an integrated circuit is applied to the card. The integrated circuit may function either by direct contact with a terminal or by radio frequency communications with a host terminal.
 9. A process for manufacturing a thin gage open loop system card, comprising the following steps: a) providing a thin gage one ply plastic type material, not to exceed 15 mil thickness, having front and back sides; b) applying a magnetic stripe, as required, to the back side of the thin gage material by applying a magnetic stripe directly to the material; c) utilizing a rotary press operation to print the front and back sides of cards and apply a hologram thereto; d) printing the signature panel, as required, onto the back side of the card using specialty inks; e) personalizing the card by using high-speed ink jet application on the front and back sides to provide variable information and magnetic encoding.
 10. The process in claim 7, wherein there may be multi-part snap apart cards, scored along a common edge, to be disengaged from one another so that one card may be used to carry out a transaction and the second card be used for informational and advertising purposes.
 11. A process for manufacturing a thin gage open loop system multi-part snap apart cards, comprising the following steps: a) providing the first card with a thin gage one ply plastic material, not to exceed 15 mil thickness, having front and back sides; b) applying a magnetic stripe to the back side of the first card of thin gage material by applying a magnetic stripe directly to the material; c) utilizing a rotary press operation to print the front and back sides of the first card and applying a hologram thereto; d) printing the signature panel, as required, onto the back side of the first card using specialty inks or hot stamp transfer; e) personalizing the first card by using high-speed ink jet application on the front and back sides to provide variable information and magnetic encoding; and f) scoring along a common edge of the two cards, so that the cards can be disengaged from one another so that the first card may be used to carry out a transaction and the second card be used for informational and advertising purposes.
 12. A process for manufacturing a thin gage open loop system card, of the type comprising a generally rectangular card body, further comprising a thin gage one ply plastic material between 5 and 15 mil thickness; a front side of the card having at least graphics printed thereupon; and a back side of the card potentially having a signature panel and either a magnetic stripe or integrated circuit for reading the cards contents; the process comprising the following steps: a) providing the thin gage one ply plastic material, not to exceed 15 mil thickness, having front and back sides; b) applying a magnetic stripe to the back side of the thin gage material by applying a magnetic stripe directly to the material; c) utilizing a rotary press operation to print the front and back sides of cards and apply a hologram thereto; d) printing the signature panel, as required, onto the back side of the card using specialty inks or hot stamp transfer; e) personalizing the card by using high-speed ink jet application on the front and back sides to provide variable information and magnetic encoding. 